Within the next two years, 80 per cent of Bangladeshi garment factory owners want to invest in automated machinery, raising concerns about the industry’s potential for increased unemployment. Automation in the ready-made garment (RMG) industry is expected to increase by more than 13 per cent throughout this time, according to research presented by LightCastle Partners at a recent discussion in the Gulshan neighbourhood of Dhaka.
There are still worries about job losses even if automated processes are predicted to increase productivity by up to 22 per cent and improve efficiency. Only about 500 of the 2,250 workers on average per factory will have direct interaction with automated systems, according to data, endangering countless jobs.
Industry executives and academics discussed the consequences of automation during the event, which was organised by LightCastle Partners in partnership with Policy Exchange Bangladesh. The chairman of Policy Exchange Bangladesh, Dr. M Masrur Reaz, highlighted the necessity of a concerted effort to future-proof the RMG industry.
Through extensive upskilling and reskilling programs, Zahedul Amin, co-founder and director of LightCastle Partners, emphasised the significance of striking a balance between worker protection and industry competitiveness. He presented research showing that 70 per cent of female workers are interested in learning new skills to operate contemporary technology, and 93 per cent of garment operators are amenable to working with automated machinery.
The dialogue’s participants, which included Shams Zaman from PwC Bangladesh and Professor Dr. Engineer Ayub Nabi Khan from BGMEA University of Fashion and Technology, talked about how to make the RMG sector more resilient in the face of technological change. To help impacted workers transition, they placed a strong emphasis on enhancing workplace safety and encouraging skill development.
The panellists also emphasised the need to develop policies to ensure long-term job stability for individuals affected by automation and to include the ideas of the circular economy in order to lower carbon emissions.
These programmes are considered essential to protecting the livelihoods of workers and preserving Bangladesh’s position as a major supplier of ready-made clothing worldwide. Bangladesh’s RMG industry produced US $ 47 billion in exports in the fiscal year 2023, made up 10.35 per cent of the country’s GDP, and employed about 4.1 million people, 60 per cent of whom were women.